Beezaasan Explotech Limited - IPO

1. Products manufactured by the company is operated in highly regulated sector. Any failures to obtain registrations for its products or the company inability to comply with the regulations or in case of its inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operate its business it may adversely affect the company business, results of operations, cash flows and financial condition.

2. Few of the raw materials used and products manufactured by the Company are hazardous in nature. If any accidents occur involving such hazardous raw materials and products, its may be held liable for consequent damages and litigation.

3. Its Registered Office and Corporate office are not owned by the company. In the event its lose such rights, the company Business, Financial Condition and Results of Operations and Cash Flows could be adversely affected.

4. The Company had negative cash flows in the past years, details of which are given below. Sustained negative cash flow could impact its growth and business.

5. The company depends on a certain supplier for its raw materials required for the company operations and the company does not have long-term agreements with suppliers for its raw materials and an increase in the cost of, or a shortfall in the availability or quality of such raw materials could have an adverse effect on its business, financial condition and results of operations.

6. The company is highly dependent on certain key customers for a substantial portion of its revenues and the company does not have long term contracts with all of these customers. Loss of relationship with any of these customers may have a material adverse effect on its profitability and results of operations.

7. The Restated Consolidated Financial Statements have been provided by Peer Reviewed Chartered Accountants who is not Statutory Auditor of the Company.

8. Manufacturing and supply of commercial explosives are subject to strict quality requirements and any failure to comply with quality standards may lead to cancellation of existing and future orders.

9. The company also operate on a tender based business. There are several inherent risks associated with a tender-based business which could affect its profit margins thereby materially affecting the company business and results of operations.

10. The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect the company business, reputation and results of operations.